Yes, that is my plan as well. Any fault, even if the software has told the VFD to run or not it will stay in that error state (turn off all run commands) until all switches return to neutral... run, jog, e-stop, any override switch is back to it's normal state.I was planning to build an e-stop subroutine that won't return to the main program until the right conditions are met.
E-stop and power outage and return of power are two different scenarios. The USP on the WJ200, only solves the power outage scenario and unattended restart when power returns and lathe controls are left in a run state. I'll have similar PLC logic.
My e-stop will effectively have two latching switches, maybe 3 to 4. One that tells the PLC it's been activated, which will open the relays vis software to the VFD's logical inputs but more importantly, it will open the circuit to the VFD logical input wires and the common (24vdc) that's controlling the logical input relays. That second part is the non software based stop. In that scenario, even if the PLC were to close/activate the run relay command, it'd would do nothing, because the circuity was opened/broken via the e-stop switch. Of course, you are trusting the VFD internal software as well.
I guess, e-stop could cut power to everything... but you lose it's ability for dynamic and fast braking if VFD loses power. To me, e-stop/panic... fast braking seems like a feature if you are unfortunately in this position. They do have another mode, I think it's GS1/GS3 but, if you activate that, it's by design to just let the motor spin down, no braking.
Not sure it would solve much, but I would have looked for a VFD with e-stop somewhat baked in... though the WJ200 and it's very common use on this site, is one main reason to continue to use it.